Which institution issues the best credit card? In fact, no card can satisfy everyone's needs, that is to say, no universal card. Which institution issues a good credit card depends on your personal needs, needs and lifestyle.
1. What Is My Credit Score?
Your credit score is the basis for calculating your credit risk and how you use credit lines. Credit card companies use credit scores to determine credit limits. Most creditors use the FICO scoring system. This means that if you have good (670+) or excellent (740+) credit, you will be eligible to use credit cards with more favorable conditions. If your credit rating is fair (669 or lower) or poor (579 or lower), you may not qualify for the most attractive credit card, but you can still find the corresponding credit card.
2. Are Card Rewards Right for Me?
Reward credit cards allow you to earn rewards with credit cards. Generally speaking, for every dollar spent on most credit cards, you can earn points, cash or mileage. These incentives can be exchanged for travel, cash returns or commodities. This is true of most credit cards, which means that some credit cards have something to pay attention to. Some credit cards offer higher earnings rates for bonus categories such as travel, petrol, groceries, and catering. If you choose a card that matches where you spend the most money, you'll get the most rewards. The reward card usually crashes the reward with 1% points, but the valuation of the reward can vary according to the procedure and type of the card.
In addition, most reward cards attract new customers with contract bonuses. With a registration bonus, you can get bonus points if you spend a certain amount of money in the first few months of your account.
3. Would I like to pay an annual fee?
Many credit card issuers charge between $25 and $500 a year. Many lenders are exempt from first-year annual fees, especially reward cards. A card that collects an annual fee may have the value of paying an annual fee each year. Generally speaking, credit cards that charge an annual fee are likely to receive incentives higher than the annual fee cost. Others are card discounts, such as free flights or checked baggage, which are generally more valuable than annual fees.
However, if your income is not more than what you pay for, or if you don't get value from the benefits of the card, a card with low or no annual fee may be a better choice. In addition, the length of the credit record will affect your credit score, so if you cancel the credit card, it may damage your credit, because you no longer want to pay the annual fee. For this reason, no annual fee card may be a good choice.
4. Will I Use Cardholder Benefits?
Most credit cards are good for cardholders. Some are limited to basic interests, such as fraud protection or free FICO credit scores. Others, usually reward cards, have more comprehensive benefits and provide additional value to cardholders. These usually include:
Car rental insurance
Extension of the warranty period for purchased items
Return protection, which extends the time limit for returning items
Travel cancellation insurance
Exemption of foreign transaction fees
Procurement protection protects goods if they are damaged, lost or stolen
Credit cards with the best benefits may have higher annual fees, higher APRs or require good credit to qualify, but they can save you hundreds or even thousands of dollars a year, especially if you travel.
In addition, it is particularly important to note that travel cards, especially airline joint brand cards, have some of the best cardholder benefits. Travel incentive cards are usually provided in conjunction with travel insurance, roadside assistance, and concierge services. With joint brand travel cards, you can expect brand discounts, such as priority boarding, free baggage, late check-out, and free Internet access. Some also offer free flights. You may want to carry an airline card with you just to use its cardholder benefits when you book the airline's flights but regularly spend money on more reward cards.
1. Your credit score is needed, and you need to make sure that your score is within the range of the cards you are looking at. If your credit score is 550, it doesn't make sense to apply for a much more demanding high-end travel card.
2. You don't have any upcoming Loans - it's usually a bad idea to apply for credit cards if you're going to make a loan for a car or a house. You look desperate to the lender. Instead, schedule the application's time to provide several months of buffer time for each application.
3. You haven't applied for a loan or a credit card lately - similarly, you don't want to apply for a credit card immediately after applying for another type of loan. Every time you apply for a loan product, your score will suffer a small blow (although temporary, so don't despair).
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